Export bond and Letter of Undertaking rules require running bonds, conditional bank guarantees and tax authority acceptance. Exports without payment of integrated tax require a bond or a Letter of Undertaking in FORM GST RFD 11 under rule 96A; exporters not covered by the eligibility notification must furnish a bond on non judicial stamp paper. Bonds may be running bonds covering multiple consignments and must secure the exporter's self assessed tax liability; fresh bonds are needed if liabilities exceed the bond. A bank guarantee may be required but the Commissioner can waive it and it should normally not exceed fifteen percent. LUTs are valid for twelve months and bonds/LUTs are accepted by the jurisdictional Deputy/Assistant Commissioner or provisionally by Central/State tax authorities.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Export bond and Letter of Undertaking rules require running bonds, conditional bank guarantees and tax authority acceptance.
Exports without payment of integrated tax require a bond or a Letter of Undertaking in FORM GST RFD 11 under rule 96A; exporters not covered by the eligibility notification must furnish a bond on non judicial stamp paper. Bonds may be running bonds covering multiple consignments and must secure the exporter's self assessed tax liability; fresh bonds are needed if liabilities exceed the bond. A bank guarantee may be required but the Commissioner can waive it and it should normally not exceed fifteen percent. LUTs are valid for twelve months and bonds/LUTs are accepted by the jurisdictional Deputy/Assistant Commissioner or provisionally by Central/State tax authorities.
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